KUALA LUMPUR, Dec 5 (Bernama) -- Bursa Malaysia closed lower on Friday amid mixed regional market performance as investors turned cautious over a possible rate hike by the Bank of Japan (BOJ) and upcoming US economic data that may influence the Federal Reserve’s (Fed) interest rate decision next week. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) pared most earlier losses to settle 4.55 points easier, or 0.28 per cent, to 1,616.52 from Thursday’s close of 1,621.07. The benchmark index, which opened 0.37 of-a-point lower at 1,620.70, moved between 1,609.67 and 1,621.25 throughout the day. The broader market was negative, with decliners outpacing advancers 604 to 439. A total of 550 counters were unchanged, 1,151 untraded, and 18 suspended. Turnover declined to 3.17 billion units worth RM2.24 billion from 4.48 billion units worth RM2.75 billion yesterday. Rakuten Trade Sdn Bhd vice-presiden...
Asian markets surged on Friday, tracking Wall Street gains after US President Donald Trump delayed immediate imposition of reciprocal tariffs, calming fears of a global trade war. Meanwhile, US inflation data showed mixed signals, offering investors a brief reprieve from concerns over aggressive Federal Reserve rate hikes.
📈 Asian Markets Gain Momentum
🔹 Hong Kong’s Hang Seng Index rose 1.6%, marking its fifth straight week of gains and the strongest weekly performance in four months.
🔹 MSCI’s Asia-Pacific Index gained 0.54%, hovering near a two-month high.
🔹 Chinese tech stocks rallied, driven by AI startup DeepSeek’s breakthrough, with the Hang Seng Tech Index hitting a three-year high.
🔹 Japan’s Nikkei slipped 0.55% but remained on track for weekly gains.
💬 Barclays Analysts: "While markets are relieved by the delay in tariffs, it’s uncertain whether this reflects a lower risk of eventual implementation."
📌 Trump’s directive initiates an investigation into trade levies, with any tariffs likely delayed until after April 1.
💰 Inflation Data Offers Mixed Signals
📊 US producer price index (PPI) rose 0.4% in January, exceeding the 0.3% forecast, but PCE components (Fed’s preferred inflation measure) remained soft—fueling hopes of cooler inflation ahead.
📉 US Treasury yields held steady at 4.535% after dropping 10 basis points on Thursday, the biggest daily drop in a month.
💬 Christopher Dillon (T Rowe Price): "While the Fed remains on hold, the ECB is likely to aggressively cut rates, creating divergence in global monetary policy."
🏦 Fed Rate Cut Expectations Shift Again
📌 Markets now fully price in a 25-bp Fed rate cut by October, with only 33 bps of easing expected in 2025.
📌 US jobless claims fell to 213,000, indicating a stable labor market, further delaying rate cut bets.
💱 Currencies & Commodities
🔹 The dollar index remained at 107.07 after a 0.8% drop on Thursday, its biggest decline since Jan 20.
🔹 The euro held near a two-week high at $1.0459, supported by optimism around Ukraine-Russia peace talks.
📉 Gold prices remained poised for a seventh straight weekly gain, reflecting persistent investor caution.
🔍 What’s Next?
✔️ Markets await further clarity on Trump’s tariff roadmap after investigations.
✔️ Focus on central banks globally, with the ECB expected to cut rates aggressively while the Fed holds steady.
✔️ Emerging markets to navigate currency volatility amid diverging policy paths.
📌 While Asian stocks celebrate a tariff delay and softer inflation components, global uncertainties keep investors on edge.
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